In a report from data site Kaiko.com, Bitcoin’s 20-day volatility is now lowered to Nasdaq level for the first time in two years. Normal star digital asset it follows the movements of the S&P 500. Let’s see together what this means.
Gap with the S&P 500
According to the quarterly report prepared by Kaiko on October 17, 2022, the cryptocurrency par excellence has been correlated for some time with the S&P 500 index. However, this time the similarities bring it closer to the index Another big Wall Street. Indeed, it appears that the main index of the New York Stock Exchange, the Nasdaq some commonalities with Bitcoin.
US inflation data hit and caused the stock market in general to decline before rebounding. Indeed, the figure was expected 8.1%but the result was a little better than expected: 8.2%.
Despite the fact that the cost of US consumer prices (excluding food and energy costs) reached the highest level in 40 years, inflation, although higher than expected, is still falling from the 9.1% of the last increase.
For its part, bitcoin has followed the movement of the stock exchanges and therefore also the Nasdaq and other major indexes by the way. under $18,000 touching the lowest threshold since December 2020 so far. However, as described above, compared to the stock markets, it has recovered.
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A bull run if the 20,000 dollar threshold is reached?
The Psychological Threshold of $20,000 it could revive Bitcoin and encourage it back up. Even if talking about bull running is taboo, it could indeed go up. Interest over the past few days in the flagship digital asset has been steadily increasing on the web. Many investors are feeling optimistic and expecting an increase in Bitcoin.
It seems that the volatility that has marked the markets in recent months was also there reductions and the level of BTC fell to the level of the Nasdaq for the first time since 2020.
30- and 90-day volatility fell such as the stock market sector. While there are both equities and Satoshi currency, the latter is much more sensitive to macro news that often haunts markets these days. In fact, its lack of regulation makes it a more volatile market than traditional stock exchanges.
Another question is the US fiat currency performancethe strong dollar has already done a lot of damage in the area of exports, but how does this translate to Wall Street’s performance?
Strong currency has sent the Standard & Poor’s 500 and Nasdaq down 13% each and 10% each since September, which is when this trend is most pronounced.
Acceptance of bitcoin and cryptocurrencies is growing
During this time, Bitcoin is becoming more and more established around the world, so much so that it is no longer rare to find indications that confirm that payments can be made in commercial establishments (the most common example is Mc Donald’s). Now, internet giant Google Cloud has also joined the club.
Google Cloud, indeed, it will allow payments through Bitcoin and other cryptocurrencies (Ethereum, Dogecoin, etc.) from next year. Paypal also accepts encrypted payments including Bitcoin.
Even the world’s largest US custodian bank, BNY Mellon open to BTC by launching custodial services for investment firms, and platforms such as Solana DeFi Mango Markets grew by $100 million.
The spread, which is the difference between BTP and German BUND in the case of cryptocurrencies, shows the premium/discount between the price of BTC in local currency in US dollars with the hourly exchange rate of the currency and is influenced by exchange rates, demand. and the performance of other crypto assets.
This figure varies on the Kingdom of King Charles III markets between -0.1% and +0.1%, therefore a minimum range, and on the Japanese market between -0.2% and +0.2% with a range double that of the Old World.
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